Qumiun 1 130 Marks! Leonard and Robert have been trading as partners for some time sharing proﬁts and losses in the ratio 2:].On 29 February 2020 their statement of ﬁnancial position was as follows: ASSETSNon-current assets:Property Vehicles Furniture Goodwill Current assets:Inventory Accounts receivablesBank Total assets EQUITY AND LIABILITIES:Equity: Capital accounts Leonard Robert Current accountsLeonard Robert Non-current liabilities:Loan Current liabilities:Accounts payablesTotal equity and liabilitig On 1 March 2&0, they decided to admit Iaurinda to the partnership on the following conditions: 1. The assets have be revalued as follows: N$ Furniture 8 500Goodwill 45 000Inventory 45 000Vehicles 17 000Property 130 000 2. An allowance for credit losses of N$ 3 000 was to be created 3. Laurinda will obtain [/5 share of the pannership and it was agreed that she would pay a premium forgoodwill for her share. 4. Leonard and Robert will share the remaining proﬁts in the ratio 3:2. Leonard and Robert must make cashpayments or withdrawals in order to get their balances in line with their proﬁt sharing ratios. 5. Goodwill should not be disclosed in the statement of ﬁnancial position after the admittance of Laurinda. REQUIRED: NIARKS a) Calculate the capital amount that Laurinda must contribute for 1/5 share in the partnership. 4 b) Calculate the new proﬁt sharing ratio of the partners after the admission of Laurinda. 4 2) Prepare the capital accounts of the partners in columnar format. 14 d) Draft the statement of ﬁnancial position immediately after the admission of Laurinda to the 8partnership. TOTAL MARKS 30
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